Indonesia’s newly established sovereign wealth fund, Daya Anagata Nusantara (Danantara), and the Indonesia Investment Authority (INA) have signed an agreement to invest $800 million in a chlor-alkali and ethylene dichloride (CA-EDC) project owned by IDX-listed petrochemical firm Chandra Asri Pacific (Chandra Asri Group), according to an announcement on Tuesday.
The partnership aims to boost Indonesia’s production capacity of caustic soda and ethylene dichloride—critical inputs for downstream sectors including nickel processing—and reduce reliance on imports. It also aligns with the country’s broader economic transformation agenda, particularly its push for industrial downstreaming and self-sufficiency.
A unit under Chandra Asri Group, PT Chandra Asri Alkali (CAA), will manage the development of the CA-EDC project. The plant is expected to produce 400,000 tonnes of solid caustic soda (827,000 tonnes in liquid form) and 500,000 tonnes of ethylene dichloride annually. It also aims to expand domestic chlor-alkali production and introduce chlorine derivatives. Feasibility studies are underway to assess potential chlorine-based products that boost value and support local industry growth.
Pandu Sjahrir, Chief Investment Officer of Danantara, said the initiative is aligned with Indonesia’s economic transformation agenda through downstream industrialisation. “This collaboration supports scalable, import-reducing industries with long-term growth potential,” he said, adding that the chemical sector plays a vital role in value chains ranging from manufacturing to energy transition. “We welcome global partners who share our vision of building resilient, high-value industrial ecosystems.”
INA CEO Ridha Wirakusumah said the partnership reflects a shared commitment to enhancing domestic production capabilities and reducing reliance on imported chemical inputs. “By combining institutional capital with industrial expertise, we’re not only addressing strategic supply security but also laying the foundation for long-term, scalable industrial growth,” he said.
Chandra Asri Group president director Erwin Ciputra said the project marks a major milestone in the company’s efforts to support Indonesia’s industrial development. “The involvement of Danantara and INA shows investor confidence in the sector. This collaboration builds a strong foundation for sustainable growth,” he said.
The plant is projected to cut Indonesia’s dependence on imported caustic soda, potentially saving up to 4.9 trillion rupiah annually, while also generating up to 5 trillion rupiah in foreign exchange each year from ethylene dichloride exports.
The CA-EDC plant is expected to play a vital role across various industries by providing essential inputs for water treatment, soap and detergent production, alumina refining, and nickel processing. Strengthening local supply chains and boosting exports, the project aims to reinforce Indonesia’s industrial foundation and enhance its competitiveness on the global stage.
